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Do Fund’s Village, Economic Growth, Inequal Income Distribution, Unemployment Rate, and Human Development Index Affect Poverty in Indonesia?

In: Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2023)

Author

Listed:
  • Danang Indrajaya

    (Telkom University, Faculty of Economics and Business)

  • Dedi Iskamto

    (Telkom University, Faculty of Economics and Business)

Abstract

This study aims to determine the influence of the linkage of the fund’s village program, economic growth, inequality of income distribution, unemployment rate, and human development index on poverty alleviation in Indonesia in the short and long term. The method used in this research is to use the panel data regression and Generalized Methods of Moment (GMM). The data used is secondary data with a cross-section (provinces) and time series (years) data. The cross-section data used is from 33 provinces in Indonesia. The time series data used is annual data from 2017 to 2022. The results showed that the fund’s village, unequal income distribution, and unemployment had a significant positive effect on poverty in Indonesia partially. In comparison, economic growth and the human development index had a significant negative effect on poverty. Poverty decreases in Indonesia as economic growth and HDI both rises. The interaction of the fund’s village and the human development index, in contrast, has a negative and significant impact on the poverty rate, according to the findings of the GMM System. When fund’s villages are used to build human resources, the poverty rate is reduced.

Suggested Citation

  • Danang Indrajaya & Dedi Iskamto, 2023. "Do Fund’s Village, Economic Growth, Inequal Income Distribution, Unemployment Rate, and Human Development Index Affect Poverty in Indonesia?," Advances in Economics, Business and Management Research, in: Suhal Kusairi & Forget Mingiri Kapingura & Ratih Hendayani & Nizam Ahmat (ed.), Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2023), pages 258-270, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-292-7_15
    DOI: 10.2991/978-94-6463-292-7_15
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